Plans, Plans and More Plans 

We can never talk too much about the trader’s plans and defining them.  Many traders think that plans once completed at the beginning of the year are done for the year.  Wrong!  

Trader plans need to be reviewed and modified monthly and sometimes even sooner.  Markets change results change and ones market knowledge changes. 

So keeping on top of things and modifying a trading plan and help to avoid the “should ‘a, could ‘a, would ‘a” at the end of the year when the goal isn’t reached.

Strategies need fine tuning as market conditions change and as I have always said, writing the plan somehow creates a special magic of success. There is something about having it in writing that makes the magic work that is different from just having it in your head. 

The more you take time to DIG into each part of the trade the more you will uncover the places you can refine it. One of the best ways to keep on top of tuning the plan and details of the trade is to compare your similar trades in your journaling. Notice how each trade is different looking for anomalies that may pop out 

Journaling can also point you to the areas to focus on for fixing a trading problem. Lets say you  compared your trades from the morning and you found you had more winner from 10:00 – 10:30 am EST and the average length of the winners were 14 – 20 ticks and the average time in the trade was 3 mins. 

Your new rules for your trading plan could change to increasing size only during that morning timeframe.  You could close the trade if it ran longer than 3 mins if it wasn’t moving and you also realized you were always with the trade on most of the winners.  New rule, only trade the trend. 

Get the picture dig it will work for you and you will start to see amazing changes and results. 

Here are some other key parts of the trading plan that you could review on a regular basis:

• The trading set-up – these are the conditions that have to exist for the trade to work. Defining the indicators being used and tweaking them so they work better. Be sure to measure the consistency of the same set-up to determine the percentages they win and lose.  A good rule of thumb is to be 85% or higher on the win side or look to change it. 
•  Determine:
  • Are you getting the results you want?
  • Can you add an indicator?
  • Change or add a timeframe?
• Times: within the day, or days of the week  – successes
  • Are there any particular times of day that win more than others?
  • Are there times where your trades are more profitable?
  • What is the average length of time you are in your winning trades?
  • Do you win more on certain days of the week more than others?
• Entries/Trades – fine tuning
  • Can you refine the entry by a few ticks  - they can add up
  • Are you trading mostly with the trend or counter-trend trading?
    • Which are you most profitable at?
    • Which markets lead your trades most of the time?
• After the entry of the trade
  • How do you monitor the trade?
  • Do you have your profit targets and stops in place?
  • Are there any things you can do to “tighten” up this part of the trade?
• Your exits
  • What are the different ways you can run with the trade?
  • How can you protect your cash and lock in profits?
  • If you are up and the trade pulls back how much room do you give it?
  • Does a training stop help?
•  What specific indicators do you use?
  • What is the priority sequence of each of your indicators?
    • Or better yet rate the importance of the indicator within the trade.
    • How does each indicator affect the trade?
    • Noticing how each indicator is working with the trade in detail is so important
    • Do all your timeframe show the same trend?
    • Does one timeframe tell you its time to entry and another shorter timeframe tell you the price you want to enter

Keep in mind there is not one trading set-up that will work 100% of the time (or we would all be trading it) Know when your trade set-up has: 

• Perfect conditions – everything works exactly as planned.

When this happens the more details you track the better and the easier it will be to repeat

• OK Conditions – This where the trade works half-way and you manage to get some profits out of the trade but they are small. In this situation most likely something has happened to the market conditions and during the trade the mode has gone from offensive to defensive with the goal of locking in something or minimizing the 
• Bad Conditions – This is when all the indicators show up but the trade doesn’t work. Here is when knowing the difference between what works and what doesn’t helps the trader exit as soon as possible. KNOW what’s off, based on how the perfect trade sets up. Knowing this you can avoid this trade when it shows up again. Saving some money. 

Noticing and defining the market conditions of the Perfect – OK – and Bad trade can really save a trader from unnecessary emotional build-up. Create certainty, eliminate fear and best, increase profits. But the only way a trader can do this is by tracking and reviewing each trades results.  

I can’t tell you how many traders call me for coaching that do NOT track their traders or have a plan. I guess it’s obvious because they are in trouble and so they’re calling me.  The great traders I have come across all seem to have the common thread of “digging” and really knowing the markets they trade so they can load up when it’s right and stay out when it’s bad. 

Your goal is to have a plan > track your trades and be a “diggers” too. 

In the meantime Great Trading!